Executive Summary Although the dual title of chief executive officer (CEO) and chairman of the board is often a subject of debate in the realm of good corporate governance, it is a useful construct when planning CEO succession. In certain cases, a former CEO will transition into the role of…

In the corporate world, there is no role more closely scrutinized than that of the Chief Executive Officer, who embodies the direction of the company itself. Thus, appointing a new CEO indelibly begins a brand new chapter in the company’s narrative. Those concerned with executive compensation are equally intrigued by…

Introduction The past two years have produced a large number of U.S. companies that have undergone initial public offerings (IPOs). With the current IPO market alive and well, the amount of anticipated offerings appears likely to remain strong throughout 2015. Companies deciding to go public receive numerous benefits in bringing…

Corporate aircraft use became one of the most widely scrutinized executive perquisites in 2008 and the issue continued to receive attention even in the years immediately following the financial crisis. While many executives are granted permission to use company aircrafts for business purposes, any personal use must be reported as…

Pay policies continue to receive attention due to the combination of required shareholder votes on executive compensation and increased public scrutiny. Decisions surrounding executive compensation are now a central focus because shareholders now have a vote on the topic. As a result, the relationships between companies and their compensation consultants…

Introduction Chief operating officers (COOs) fill the essential role of managing the company’s day-to-day operations while also communicating critical information to chief executive officers (CEOs). While there is no singularly agreed-upon description of what this role entails across various company types, the effectiveness of a COO is nonetheless vital to…

In recent years, long-term equity incentive plans have taken on an even more critical role in executive compensation programs at U.S. public companies. With the passage of Dodd-Frank and the ensuing implementation of Say on Pay, companies have faced a greater need to align executive compensation with long-term company performance.…

During the 2014 proxy season, U.S. public companies have had, on average, results that are consistent with last year’s Say on Pay votes, with nearly three-fourths of the companies in the Russell 3000 receiving greater than 90% shareholder approval. Average Say on Pay support has increased marginally to 90.8% while…

Key Findings ▶ Nearly half of sample technology companies had an SVT percentage between 10% and 15%. ▶ The median company had 59% of its SVT attributable to total shares available and 41% of its SVT attributable to overhang. ▶ Over half the sample technology companies used fungible equity pool…

Companies face increasing scrutiny from shareholders to showcase how their CEO compensation plans are tied to company performance and shareholder value. While shareholder engagement is an important part of this process, setting up an effective pay package is the first step. We’ve examined the use of performance equity among TSX…

Every year since the advent of Say on Pay in 2011, companies with Say on Pay approval rates lower than 50% have had to show shareholders that they can make appropriate changes to compensation policies or else risk failing again in subsequent votes. Any compensation decisions or policy changes a…

Many companies provide for the accelerated vesting of equity previously granted to their executive officers in connection with a change in control (CIC) of the company. Such acceleration usually takes place either immediately upon the consummation of an ownership change (single trigger), or is conditional upon the executive’s termination within…

Key Findings ▶ 2012 was a strong year for TSX energy CEOs, especially at the top. ▶ Growth in TSX CEO pay was driven by equity. ▶ TSX energy CEO pay mix is more similar to U.S. energy companies than it is to other Canadian companies. Introduction The energy industry…

A company in search of a new CFO must decide whether to fill its vacancy by promoting a current employee or by hiring an external candidate. The decision depends on a number of factors, including the suitability of internal successors, compensation, and whether the company needs to significantly alter its…

The disclosure of peer groups used to benchmark executive pay is an important component of public compensation disclosure. It enables companies to show that pay is based on market practices and comparable to that of similar companies. Though, the use of peer groups is scrutinized by institutional investors and proxy…